Four Malaysian highways entitled to toll hikes in 2017

Only four highways in Malaysia are entitled to toll hikes in 2017, based on current concession agreements, according to minister of works, Datuk Seri Fadillah Yusof. If the hikes are to be deferred, the government will have to compensate an estimated RM59.77 million in total.

This was mentioned in a written reply to Lim Guan Eng, who asked about the amount of compensation required from the government should the toll rates not be hiked. In the Dewan Rakyat, the Penang chief minister also asked why the North-South Expressway (NSE) tolls had not been scrapped yet.

Fadillah said the NSE was built in 1989, and completed in 1994 at a cost of RM5.9 billion. This was borne by the concessionaire, while the government covered the costs of land acquisition. The highway concession was supposed to end by 2018, according to the original agreement in 1988, but efforts made to minimise the impact of toll hikes led to restructures in 1999, 2002 and 2011.

“Under the last restructuring (2011), all expressway concessions under PLUS Berhad, including the NSE, have been standardised, that is ending on December 31, 2038,” Fadillah said.

By the end of 2015, the overall toll collected on the NSE was RM36.39 billion. Meanwhile, the total amount of compensation paid out to PLUS following the deferment in toll hikes until 2015 was RM917.1 million.

However, Fadillah explained that a high amount of toll collection may not necessarily lead to big profits. “On average, concessionaires are required to spend 45% to 50% from their earnings for loan repayment, overheads and operation (20%), as well as for repairs and upgrading (15% to 20%),” he said.

Only an estimated 10% of the profit from toll collection is disbursed to shareholders, Fadillah concluded.

Preferring to drive cars rather than desks, Hafriz Shah ditched his suit and tie to join the ranks of Malaysia’s motoring hacks. A car’s technical brilliance is completely lost on him, appreciating character-making quirks more. When not writing this ego trip of a bio, he’s usually off driving about aimlessly, preferably in a car with the right combination of three foot pedals and six gears.

Buddha said USA tolls can hike every single year, if not, USD 8 Billion has to be paid as compensation.
You cannot see the agreement between Buddha and USA; that’s the beauty of Official Secretary Acts in USA.

All Malaysian entitled for paying price hike.That sentence much appropriate leh.. when general election comes these hike price announcements will circulate in the air non stop then later putrajaya clowns will ‘come forward’ to voice out their ‘concern’ towards rakyat.. Then play their ‘intervention’ for the sake of burdening rakyat..Wayang lor.. Same goes to Selangor people now facing water ‘contamination’ just to make Selangor Government in bad image.Selangor people will face these sabotage until GE ends.People of opposition states,brace yourself for many other unprecedented events from now on.Don’t surprise if suddenly cheap washing machine or rice cooker sold out faster than goreng pisang too..Raise your tongue if u agreed.

There you go, from 2108 extent to 2038. The best part is, the news came out and how many citizen read it and … where’s the response!?
My take is even it extent to 2138 also the M’sia citizen will till let the gov stay in office.

car sales grew from 80K a year in the 80s to 300K+ in the 90s. and they were using that formula as basis to calculate profit to sustain. that is saying they are anticipating every year 300K new cars put to the road. but then, enter the new millenium car sales rose over 400K. crossing over 500K units every year for the past 10 years. that means highway conssessionaires are making more money than what was planned.

What business is best in MY? That’s is highway! Because this business janji untung. Jikalau rugi, company require to extend contract due to didn’t hit profit number. If don’t want extend, nvm…. Gov still pay compensate of hike toll fee. This business guarantee untung…. Siapa kena mental-ry , boleh buat business ni.

I think this one really masterpiece of Tun M. He’s the one responsible for all these highway. I think what the current administration should do is tax these highway concession holders heavily so that part of their heavy handed profit will go back to the government coffer, instead of increasing people sufferings by reducing subsidy.

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